SunCoke holds full-year outlook despite weather-hit Q1

First quarter ended March 31	2026	2025	% Change
Net sales	$455.1	$436.0	4.4%
Net earnings (loss)	$(4.4)	$17.3	-125%
Per diluted share	$(0.05)	$0.20	-125%

(in millions of dollars except per share)

SunCoke Energy Inc. bled red in the first quarter as severe winter weather and a turbine failure at its Middletown, Ohio, facility weighed on coke production and power sales.

Executives on a conference call on Thursday said both issues were temporary and reaffirmed its outlook for the year.

The Lisle, Ill.-based coke producer swung to a first-quarter net loss of $4.4 million from net earnings of $17.3 million a year earlier. Sales grew 4.4% year over year (y/y) to $455.1 million.

Domestic coke

Domestic coke shipments of 842,000 tons were down 6% from a year earlier. Severe winter weather was the primary driver of the decrease. The company also reported lower power sales tied to the Middletown turbine failure and lower volumes following the closure of its Haverhill 1 facility.

SunCoke expects to make up lost coke production over the balance of the year. Middletown power generation should resume late in the second quarter, with the EBITDA impact reversing in Q3 and Q4, said CFO Shantanu Agrawal.

Industrial services

The industrial services segment reported stronger terminal volumes. The 5.6 million tons handled in Q1 represented “a substantial improvement vs. the fourth quarter of 2025,” according to Agrawal.

Management said the integration of Phoenix Global, which it acquired in August last year, is progressing. Synergy benefits are expected to build through 2026 despite some near-term IT and systems “drag costs,” Agrawal said.

Outlook

Executives said terminal performance is improving, driven by stronger international coal demand and higher pricing.

They noted Middle East tensions have contributed to firmer thermal coal pricing and higher export demand.

Despite weather disruptions in Q1 and a temporary turbine outage, SunCoke says it is sold out for 2026. “We are running at full capacity and sold out for the year,” President and CEO Katherine Gates reported.

The company expects operational recovery throughout the remainder of the year and remains confident it will hit its full-year EBITDA range of $230 million to $250 million.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held various editorial positions with steel industry publications, associations, and mills since 2007. She joined the SMU team in 2022. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania.